Brian Nichols is the co-founder of Angel Squad, a community where you’ll learn how to angel invest and get a chance to invest as little as $1k into Hustle Fund's top performing early-stage startups

The 2025 Angel Capital Association study tracked 2,400 angel investors over three years. Community-backed angels saw 2.3x higher returns and 40% faster time-to-exit than solo investors.

This isn't about access to better deals. It's about structural advantages that compound over time.

The Portfolio Construction Problem

Most solo angels build terrible portfolios. They invest in 5-8 companies through personal networks. Maybe two are actually good opportunities.

Elizabeth Yin frequently emphasizes the math: "For tech companies where the biggest risk is getting to product-market fit, you need many at-bats to make it. Statistically speaking, you probably have 5-10 at-bats in your lifetime."

Solo angels can't deploy enough capital across enough companies. If you're writing $25K checks with $200K to invest, that's 8 companies maximum. One needs to return 50-100x. Those are lottery odds.

Community models solve this through smaller check sizes. Angel Squad members invest $1,000-5,000 per company, enabling 20-40 investments with the same capital.

The Due Diligence Multiplier

Solo angels do amateur due diligence. They evaluate maybe 10 companies per year. They lack pattern recognition.

Community-backed angels evaluate 50-100 companies annually through weekly pitch sessions. That volume builds judgment fast.

More importantly, you get collective intelligence. When a company pitches to Angel Squad, 40+ people evaluate it simultaneously. Someone always has domain expertise. Someone invested in a competitor.

Eric Bahn points out that experience helps you "take better guesses at where there may be opportunities" and "test and iterate faster." Community membership accelerates that experience curve.

The Follow-On Advantage

The big returns in angel investing come from doubling down on winners. When a portfolio company raises their Series A, existing investors with pro rata rights can maintain ownership.

Solo angels typically miss these opportunities. They don't have capital reserved for follow-ons, or their initial check was too small to matter.

Community models systematize follow-ons. Hustle Fund shares follow-on opportunities with Angel Squad members. When a portfolio company performs well, members can invest again at reasonable valuations.

The math is straightforward: invest $2,000 at a $4M cap, then another $3,000 at a $12M cap, then the company exits at $200M. You've dramatically increased returns versus just the initial investment that gets diluted.

The Network Effects for Exits

Exits don't just happen organically. Someone needs to connect founders with acquirers.

Solo angels can't provide this infrastructure. Community-backed angels have access to extensive networks. When a portfolio company is ready to sell, there are 2,000+ Angel Squad members across 40+ countries who might know potential buyers.

Community-backed companies exit 18 months faster on average. Faster exits mean better IRR even if absolute returns are similar.

The Information Asymmetry Problem

Solo angels invest based on incomplete information. Community models reduce information asymmetry dramatically.

When Hustle Fund reviews 1,000 pitch decks monthly and shares the top 2-3% with Angel Squad, members benefit from institutional filtering.

You also get transparent analysis. Hustle Fund shares their thinking, why they invested, what concerns them, what milestones matter.

Shiyan Koh notes that successful investing requires both "an awesome team" and "an interesting opportunity" where "both need to come together." Community members learn to evaluate this through repeated exposure.

Solo angels also waste capital through inefficiency. Community-backed angels benefit from economies of scale. SPV structures handle legal paperwork collectively. 

Due diligence happens collaboratively.

The typical solo angel spends $5,000-10,000 annually on lawyers and accountants.

Why This Matters in 2026

The performance gap between community-backed and solo angels will continue widening.

Deal quality is concentrating. The best founders seek smart money, not just capital. Communities provide more value-add.

Markets are getting more efficient. Good opportunities get competed for aggressively. Solo angels can't move fast enough.

Portfolio construction is becoming scientific. We now know what works: 25+ companies, concentrated follow-ons on winners, 7-10 year holding periods. Solo angels can't execute this.

Network effects compound. As more sophisticated investors join communities, the collective intelligence increases.

What This Means for You

If you're investing solo, the question isn't whether communities provide advantages, the data proves they do. The question is whether those advantages justify the costs.

For most angels deploying $30K+ annually and planning to stay active for 5+ years, the compounding benefits justify the investment.

If you're considering angel investing for the first time, starting with a community is almost certainly right.

The performance gap will only widen from here. Community-led models are redefining what successful angel investing looks like.